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Federal Minimum Wage Essay

435 Words2 Pages

Whether the United States federal minimum wage should be increased, is often debated. The federal minimum wage has been changed twenty-two times since its inception. In 1938, the minimum wage was set at 25 cents per hour. Our economy has drastically changed since the early 1900s, the 25 cents per hour minimum wage has been changed to $7.25 an hour. Even with this change, due to the current inflationary situation, living standards are nearly impossible. I agree that the United States federal minimum wage should be increased to reduce labor turnover, increase consumer activity, and decrease poverty and crime rates. Increasing the federal minimum wage would increase consumer goods activities due to increased pay. According to the U.S. Bank, at …show more content…

This is true, however, with pay being raised, one can afford more products than before. Business owners would benefit from the increase in consumer goods activity. Due to consumer activities uprising, the need for worker compensation will decrease. With the federal minimum wage increasing, worker compensation would decrease due to an upcharge in payroll. The Worker’s Compensation Board states that “workers’ compensation is insurance that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job,” (WCB). Ideally, the government would decrease worker compensation because of higher pay. Due to this, it would increase the reduction of labor turnover. However, with the reduction in labor turnover, employees would most likely stay at their jobs for longer periods. Our economy currently struggles with poverty rates, which rapidly increase as the years go by. Times Magazine stated, “12.4% of Americans now live in poverty according to new 2022 data from the U.S. census, an increase from 7.4% in 2021.” Poverty rates would decrease because the minimum wage would be higher, which would allow consumers to afford more. With better opportunities, there would be fewer crime

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According to a 2014 Congressional Budget Office report increasing the minimum to $9 would get 300,000 people out of poverty. Economists also believe that raising the minimum wage to $10.10 an hour would get 1 million out of poverty. My final detail is that raising the minimum wage to $9 an hour would get a worker who works full time a yearly salary increase from $15,080 to $18,720 which is enough money to push the person above the poverty line for a family of three. The increase of yearly salary would be enough for a person to support a family of three and if they don’t have to support three people it would give them extra money for food, clothes, housing,

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But yeah it is nice to have extra money by raising minimum wage but it is going to be the same thing overall, if not worse the bills are going to go up with it. Raising minimum wage could reduce the benefits you get such as insurance, vacation, and your future. Raising it as well means what about all the people that already have their worked their way to what the minimum wage wants to be set at. Do they expect them to stay at that same wage or go up as much as minimum wage raised. It is hard to raise the minimum wage

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Therefore, evidently, the extra money for these raises will be forced to come from within the business itself, but how will they have the ability to raise their wages without losing income? The prices of products sold at that business will increase in direct effect to the consumers, to allow their income not to decrease or diminish. In addition, possible ramifications to raising minimum wage could be prices of products sold at a given business will have to increase to allocate the extra money being given to employees, in result small businesses could lose their business, and unemployment rates will increase due to the fact that some businesses cannot afford to pay the same amount of employees as before on this

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